OPEC+ agrees to 547,000 bpd oil output hike for September
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Argaam
an hour ago
- Argaam
OPEC crude oil production holds steady in July
OPEC's crude oil production remained steady in July, as increased output from some member countries offset declines in others, Bloomberg survey, published on Monday, Aug. 4, showed. The Organization of the Petroleum Exporting Countries (OPEC) produced an average of 28.31 million barrels per day (MMB/D) in July, which was virtually unchanged from the previous month. Meanwhile, the five countries participating in the OPEC+ supply agreements produced around 20.7 MMB/D, exceeding their collective agreed quota by approximately 451,000 B/D. Over the past weekend, OPEC completed the first phase of its production restoration plan, approving an increase of 547,000 B/D for September. This move is part of OPEC's efforts to regain global market share, while still keeping the door open to various options, including either resuming additional output or reverting to production cuts depending on market conditions. The Bloomberg survey is based on tanker-tracking data, input from officials, and estimates from consulting firms such as Rapidan Energy Group, FGE, Kpler, and Rystad Energy.
Arab News
16 hours ago
- Arab News
IMF praises Saudi Arabia's economic resilience
RIYADH: The International Monetary Fund has commended Saudi Arabia for its resilience to global shocks, citing its expanding non-oil sector, contained inflation, and record-low unemployment. In its 2025 Article IV Consultation, the IMF recognized the Kingdom's robust non-oil growth and strong reform momentum, crediting ongoing efforts under Vision 2030 for diversifying the economy amid heightened international uncertainty and declining oil revenues. Saudi Arabia's appraisal comes as neighboring Gulf economies face mixed outlooks amid global tensions. The IMF highlighted the UAE's robust non-oil growth, while Kuwait grapples with fiscal pressures from OPEC+ production cuts and a call for gradual consolidation. Qatar and Oman continue to advance diversification under their respective national visions, focusing on private sector growth and fiscal reforms. Despite external shocks, the region's ample reserves, structural reforms, and strong financial systems are seen as key stabilizing factors. IMF executive directors highlighted the Kingdom's economic progress, noting that 'robust non-oil growth, low inflation, and record-low unemployment' have been achieved through 'appropriate macroeconomic policies, strong buffers, and impressive reform momentum.' The IMF cautioned that fiscal and current account deficits persist, emphasizing the need for continued structural adjustments to ensure long-term sustainability. In 2024, Saudi Arabia's non-oil real gross domestic product expanded by 4.5 percent, driven by growth in the retail, hospitality, and construction sectors. This was offset by a 4.4 percent contraction in oil GDP, as OPEC+ production cuts held crude output at 9 million barrels per day, moderating overall GDP growth to 2 percent. Inflation remained under control, averaging 1.7 percent, while unemployment among Saudi nationals fell to its lowest level on record, with youth and female unemployment rates halving over the past four years. The IMF noted that despite a shift in the current account to a deficit of 0.5 percent of GDP, the Kingdom's fiscal and external buffers remain substantial. The Saudi Central Bank's foreign assets stabilized at $415 billion, covering 187 percent of the IMF's reserve adequacy metric. 'The banking sector remained strong, marked by high capitalization, profitability, and nonperforming loans at their lowest since 2016,' the IMF stated. Looking ahead, the IMF projects the Kingdom's real GDP growth to accelerate to 3.9 percent by 2026, with non-oil growth expected to exceed 3.5 percent. The continued implementation of Vision 2030 projects, combined with government-led infrastructure initiatives, is expected to sustain domestic demand and mitigate external pressures. The IMF stressed that 'pursuing a countercyclical fiscal policy in the near term' is essential to maintain economic stability, given ample fiscal buffers and persistent global uncertainties. Directors of the organization recommended a gradual fiscal consolidation strategy to achieve intergenerational equity, urging Saudi Arabia to advance 'broader tax policy reforms to increase non-oil revenue, wage bill containment, energy subsidy reform, and streamlining of non-essential expenditures.' Directors also encouraged the operationalization of an expenditure-based fiscal rule, enhanced budgetary transparency, and strengthened sovereign asset-liability management frameworks. The IMF welcomed the Kingdom's progress in strengthening its banking sector resilience. Executives commended reforms in banking regulation and supervision, the swift adoption of the Banking Law, and the establishment of a crisis management framework. They also recognized the Saudi Arabian Monetary Authority's vigilance in monitoring financial risks and its introduction of a 100 basis points countercyclical capital buffer to support stability. Additionally, directors noted continued progress in developing domestic capital markets to diversify funding sources. Directors emphasized the importance of maintaining reform momentum irrespective of oil price developments. They highlighted improvements in the regulatory and business environment, female labor participation, and governance. Sustained enhancements in small and medium-sized enterprises' access to finance, regional trade integration, and climate resilience were also recognized as key pillars for advancing economic diversification. The IMF affirmed that Saudi Arabia's currency peg to the US dollar remains appropriate, commending improvements in the Kingdom's liquidity management framework. Directors stressed that monetary operations should continue to focus on smoothing short-term liquidity without fueling asset and credit bubbles. IMF directors acknowledged Saudi Arabia's leadership role in regional stability and its contributions in multilateral forums, including the G20 and the IMF's International Monetary and Financial Committee. They expressed confidence that the Kingdom's ongoing reforms will further strengthen its economic resilience and global standing.
Argaam
18 hours ago
- Argaam
IMF says Saudi Arabia's economy resilient to shocks
Saudi Arabia's economy has shown strong resilience to shocks, with robust non-oil growth, contained inflation, and record-low unemployment, the International Monetary Fund (IMF) said. Despite heightened uncertainty and lower commodity prices, non-oil gross domestic product (GDP) is expected to grow above 3.5% over the medium term, supported by government-led projects, Vision 2030 initiatives, and major international events, the IMF said in its 2025 Article IV consultation. Real GDP growth is projected to accelerate to 3.9% by 2026, supported by the continued phase-out of OPEC+ production cuts. The IMF noted that reserve buffers remain appropriate. Current account deficits are expected to be financed through deposit withdrawals, less FX accumulation abroad, and higher external borrowing. Given the current heightened global uncertainty, pursuing a countercyclical fiscal stance is crucial, the IMF said. It stressed the need to manage strong credit growth to mitigate risks to systemic financial stability, while structural reforms remain essential to sustain non-oil growth and advance diversification. The IMF executive directors said higher oil output or additional investments linked to Vision 2030 would support growth and oil prices could rise if global recovery gains momentum or in the case of supply disruptions.
